BARROW’S STATEMENT IS AN AFFRONT TO CONTRACTOR GENERAL

The Government of Belize in FY 2009/10 had a budget of $ 432.6M at its disposal for both recurrent expenditures on goods and service and capital expenditures in the furtherance of Government delivering services to the Belizean people.  The process through which Government spends tax payer’s monies is a process that required heavy scrutiny in light of the PM’s most recent unapologetic statements on the Government’s procurement of legal services.  A close review of GOB procurement policy and procedure indicates that PM Barrow’s statements and more so his action severely contravenes the law and ought to be challenged.  This is made even more so relevant, in light of the fact that the hallmark of this UDP administration is touted to be grounded in the principles of transparency and accountability.  PM Barrow has been rather opaque and boldly arrogant in defending his actions.  This columnist will discuss what government procurement is and how it is suppose to function in Belize.

Procurement is the process by which governments purchase goods and services.  In both developed and developing countries the large scale of government purchases makes corruption or inefficiency in this process a real drain on government resources.  For developing countries like Belize this reality is even graver when financial resources are limited.  The exponential nature of how government procurement is addressed is the awareness by the international community that discriminatory practices results in a trade-restrictive and inefficient system.  It is this awareness that lead to the inclusion of the Agreement on Government Procurement as an annex to the Agreement establishing the World Trade Organization (WTO) which entered into force on January 1, 1996.  Unfortunately, as a plurilateral agreement not all members of the WTO are signatory or bound by this Agreement.  Most developing countries and Belize are not signatories to the Agreement on Government Procurement.  However, the merits of the fundamental tenants of this Agreement were incorporated in the Finance and Audit (Reform) Act of 2005.  This Act, it will be recalled, was occasioned by the citizenry’s call for better accountability in treating with public finances.  It remains of course for the Barrow administration to continue this work in areas where the legislation needs to be enhanced.  However, impetus may be required from the citizenry calling for further reforms.  What may not be widely known however; is that Belize as a member of the Organization of American States (OAS) adopted in 1996 the Inter-American Convention on Corruption, which clearly states that “Parties agree to consider the applicability of measures within their own institutional systems to create, maintain and strengthen; systems of government hiring and procurement of goods and services that assure the openness, equity and efficiency of such systems”.

Accountability to the people of Belize is required, in so far as the Government’s procurement of legal services and the operations and management of Belize Telemedia Ltd, a public nationalized company.  The Government is obligated to engage in contracts for the provision of goods or services using an open tender procedure which ensures transparency and non-discrimination in the selection and award of Government contracts.  As a second option a selective tendering procedure could be used, which allows for Government to invite selected suppliers to participate in the tender process.  A limited tendering procedure must only be used if the aforementioned previous options did not result in any tender being received.  Further to the requirements stimulated in the Finance and Audit (Reform) Act of 2005, the office of the Contractor General also has a legal mandate to monitor the award and implementation of public contracts with a view to ensuring transparency and accountability (Contractor General Act, Chapter 6, Clause 14).  Therefore a call is made upon this office to investigate the apparent abuse being perpetrated in the award of public contracts for legal services among other contracts being awarded by Government entities and Statutory Bodies, such as the Social Security Board.

What is evidently being ignored or missed is the conflict of interest that surrounds the provision of many services to Government, be it real or actual conflicts, apparent or potential conflicts of interest.  All International Financial Institutions (IFI’s) including the World Bank, Inter-American Development Bank (IADB) and Caribbean Development Bank have specific procurement guidelines that speak to how conflicts of interest are identified and ought to be addressed.  The PM’s statement of not having any interest in the law firm of Lois Young Barrow and Company may be superficially accurate. The more relevant question that may require investigation by the Contractor General; however, is his legal relationship to his daughter and her place in the Firm  and whether he has contracted in a way that contravenes international and local best practice and the relevant legislation relating to conflict of interest.  Likewise, is the case of Belize Telemedia Ltd and the procurement of legal services.  The Contractor General has an obligation to investigate and review the contracts being awarded, as BTL is clearly a public entity subject to this Act.

It is most unfortunate that most recently the IADB has provided funding for an evaluation and assessment of Government’s procurement systems and procurement operations and market practices.  This is being executed through the Office of the Contractor General; however the successful firm that was awarded the contract may be over-leveraging their expertise, as Barnett and Company has also been engaged to take up the preparation of Horizon 2030, Belize’s long term development plan.  The outcome of the national assessment of government procurement system is addressing the legislative and regulatory framework, institutional framework and management capacity and procurement operations and market practices.  This would be done in conformity with the Organization for Economic Cooperation and Development (OECD) standards and best practices.  The extent to which the outcome of the   assessment would aid in any meaningful reform of the system will remain to be seen.    This author further opines that without the adequate level of staffing and funding to the Office of Contractor General, claims of transparency and accountability will remain a buzz word.  Yet the legislature calls on that office to partake in securing public funds.

Although Government has limited financial resources, Belize does have a wealth of qualified consultants and attorneys that are well capable of providing valuable service at a competitive cost to Government.  This writer calls on the opposition to not take the consistent abuse of power, but rather to have Government’s action be subjected to a judicial review.  This call is made especially so, regarding the Prime Minister’s off-springs being awarded service contracts and being appointed on several Boards.  No law currently in place provides the scope for anyone to “have the PM back” or “his eyes or ears on any Board”.  This writer makes a further call, that with respect to the nationalized BTL, the Office of the Contractor General should so outline an insider-trading policy that would ensure that no individuals or firms within which persons of the current management or Board of Directors have any interest, would be allowed to purchase shares whenever they are made publicly available.  It can be anticipated that if such a policy is not forthcoming, there would be no basis on which to challenge any questionable purchase or acquisition of shares in that company.

One of the dilemmas of development is the fact that the integrity of the institutional framework in any country, rest significantly on the integrity of the persons who are part of that system and processes put in place, and when not adhered to gives rise to principal agent problems.  In the case of Belize, the conflict is evident that the agents that were elected to represent the people are failing miserably in executing their duties in the best interest of their principals – the people of Belize.  Instead, the administration is plagued with individuals seeking to fulfill personal agendas to the detriment of the majority.  The PM may do well to be more careful in the manner in which he profess to have no apologies on matters for which he clearly should; least he in a public way challenges the other arms of government charged with responsibilities to audit and investigate such conflict of interest.

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